Oil Exploration is a Very Costly Business
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Oil Exploration is a Very Costly Business

As you know, oil is the most important source of income for financing. So it is necessary for us to have more knowledge about the oil industry. Getting oil from the earth isnÂ’t simple and easy task. It is a very complicated as well as costly business. The earth does not give up its mineral riches easily. Searching for an oil deposit and getting oil from it are the tasks of geologists, mining engineers and miners. Geologists are scientists who study the earthÂ’s crust. With their special knowledge and instruments they can find oil deposits that untrained people might never discover. Mining engineers work out of the earth efficiently and safely. Miners do the digging and drilling.

As you know, oil is the most important source of income for financing. So it is necessary for us to have more knowledge about the oil industry. Getting oil from the earth isn’t simple and easy task. It is a very complicated as well as costly business. The earth does not give up its mineral riches easily.

Searching for an oil deposit and getting oil from it are the tasks of geologists, mining engineers and miners. Geologists are scientists who study the earth’s crust. With their special knowledge and instruments they can find oil deposits that untrained people might never discover. Mining engineers work out of the earth efficiently and safely. Miners do the digging and drilling.

To aid them in their search for oil, geologists use aerial photographs (those taken from airplane) and maps that are made from photographs. The formations of land, rocks and vegetation as seen from the air can tell much to a trained eye about what lies under the surface of the earth. Geologists sometimes create small artificial earthquakes to get a better idea of rock formations.

Often geologists have to climb steep mountains, enter a dense jungle, and walk across deserts, swamps or rivers. In these attempts, however, they do not always find what they are searching for. Sometimes they are able to find certain indications of an oil deposit on the surface of the earth. This happens when wind, rain, or rivers have worn away the soil and rock covering the layers of rock that indicate the existence of the deposit. Sometimes, however, the signs are not correct about the presence of an oil deposit.

Offshore Oil Exploration

When an area shows indications of the presence of an oil deposits, geologists still have to make a closer investigation to see if the deposit is large enough to be mined. In this process drills with diamond-tipped cutting bits called wild-cat drills, are used to bore into the rock to get the expected samples. The drills can cut out a piece of hard rock about two inches in diameter to a depth of several hundred feet.

This stage of drilling and sampling is the most costly operation in the exploration for oil. However, it is very important. This is the first step in deciding whether an oil deposit is worth mining or not. The important aspect of oil explorations is not only to find an oil deposit, but also to make sure that the exploitation of the deposit will be economically beneficial.

Mud log in process, a common way to study the rock types when drilling oil wells

When it is known how rich and how large the deposit is, a decision must be made about whether to set up an oil drilling installation on the spot. A team of experts studies the question. The team includes geologists, mining engineers, business managers and other specialists. They decide what kind of and how many oil by products, in addition to the petroleum itself, can be obtained, how much oil can be mined each day, and what equipment, supplies, labor and transportation will cost. If the cost seems too high for the amount of oil that can be obtained, the company will not set up the installation. It must make more money from selling the products than it spends in the exploitation.

 

Onshore Drilling Rig

You can now imagine that the oil industry, from exploration to the setting up of a drilling installation, needs large finances. It’s a very costly and risky business that also calls for good organization and management.

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